Blackstone Group, the entity behind India’s maiden real estate investment trust (REIT), is now planning to record the nation’s first retail properties-centred REIT by mid-2022, individuals with direct data of the event stated.
The US-based private equity main has already kick-started the method of itemizing the proposed REIT by integrating and getting ready its portfolio of mall properties throughout the nation, they stated.
Blackstone’s portfolio of income-producing retail property for this REIT is estimated to be valued within the vary of $2.2-2.5 billion, or about Rs 16,500-18,750 crore.
The portfolio of retail properties for the REIT will likely be a mixture of its subsidiary Nexus Malls together with the property acquired by way of the latest $1.5 billion industrial property take care of Prestige Group.
While Blackstone has initiated work on inner processes, together with figuring out the property, the choice of funding bankers is more likely to be concluded by February, the sources stated.
Blackstone Group declined to remark.
REIT is an
that owns, manages, and operates income-producing actual property property. It permits particular person buyers to make an funding on this platform and earn revenue within the type of rental yield and appreciation within the capital worth of the property.
Blackstone’s transfer to record a retail property REIT comes within the backdrop of rising consumption ranges, beneficial demographics, and aspirational manufacturers within the nation.
“The Indian consumption story is huge. The recent surge in retail footfalls owing to revenge shopping in the country post-Covid has emerged as the strongest as compared to the US and Europe,” one of many sources stated. “The young demographics and disposable income here make it a perfect retail market.”
Nexus Malls is one among India’s largest retail actual property platforms with a portfolio of 17 malls throughout 13 main cities. In a brief span of 5 years, Nexus Malls owns and operates over 9.3 million sq ft of grade A retail house within the nation.
This proposed retail REIT portfolio consists of the worldwide institutional investor’s latest acquisition of Prestige Group’s industrial property together with malls in Bangalore, Chennai, and Hyderabad.
In March, Blackstone concluded its acquisition of Prestige Group’s industrial portfolio that included malls in Bangalore, Chennai and Hyderabad in addition to workplaces and inns.
Blackstone is now India’s largest proprietor of workplace and retail house with an workplace portfolio of 135 million sq ft and over 9.3 million sq ft of retail house, in addition to 40 million sq ft of logistics house.
Retail malls have grow to be a life-style part within the nation although organised retail stays a comparatively small part.
“India is a unique market with urbanisation and domestic consumption in their infancy and on the rise… We see additional opportunities in this sector, which is driven by India’s young working population but remains heavily under-penetrated and under-serviced,” Blackstone Real Estate’s international co-head Kenneth Caplan informed ET in a latest interview.
As an instance, he stated the United States has round 7.5 billion sq ft retail house for a inhabitants of 330 million. India, which has round 4 instances the inhabitants, has solely 100 million sq ft of retail.
India’s first REIT itemizing passed off in April 2019 with Blackstone Group and Embassy Group-backed Embassy Office Parks REIT. Blackstone is a part of two out of a complete of three listed REITs in India.
Blackstone has emerged as probably the most aggressive institutional investor in India, with general property below administration estimated at $60 billion throughout numerous sectors, making it one of many high 10 enterprise teams within the nation.
Real property accounts for almost $20 billion of its asset worth throughout its 42 investments. Ends
https://realty.economictimes.indiatimes.com/news/retail/blackstone-plans-indias-maiden-retail-properties-reit-portfolio-valued-over-2-billion/88424288
